<div class="phx-topic abstract-wrapper">The ships add to the growing order backlog of methanol-powered container ships that currently total at least 100 vessels, equivalent to about 12% of vessels on order, according to ship brokers.</div>

The ships add to the growing order backlog of methanol-powered container ships that currently total at least 100 vessels, equivalent to about 12% of vessels on order, according to ship brokers.

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<div>Taiwan's Evergreen Marine has confirmed orders worth up to $5 billion for 24 methanol-enabled, dual-fuel 16,000-TEU container ships, which have been split between South Korean and Japanese shipyards. The deals, approved at a meeting of Evergreen Marine (Asia) directors Tuesday, end more than two months of speculation that the carrier was preparing to expand its fleet. The capacity increase means Evergreen will overtake Hapag-Lloyd to become the world’s fifth-largest container line, with vessels totaling more than 2 million TEU, according to figures from Alphaliner. Evergreen said 16 vessels worth up to $3.4 billion would be built by South Korea's Samsung...

Taiwan's Evergreen Marine has confirmed orders worth up to $5 billion for 24 methanol-enabled, dual-fuel 16,000-TEU container ships, which have been split between South Korean and Japanese shipyards. The deals, approved at a meeting of Evergreen Marine (Asia) directors Tuesday, end more than two months of speculation that the carrier was preparing to expand its fleet. The capacity increase means Evergreen will overtake Hapag-Lloyd to become the world’s fifth-largest container line, with vessels totaling more than 2 million TEU, according to figures from Alphaliner. Evergreen said 16 vessels worth up to $3.4 billion would be built by South Korea's Samsung Heavy Industries, while eight ships valued at up to almost $1.7 billion would be constructed by Japan's Nihon Shipyard Company. The carrier did not give any details about when the vessels would be delivered, but shipbrokers said they are likely to join the carrier’s fleet from 2026 onward. The ships also add to the growing order backlog of methanol-powered container ships that currently total at least 100 vessels, equivalent to about 12% of vessels on order, according to ship brokers. These include six methanol-capable 9,000-TEU container ships contracted by Maersk last month in a deal that increased the number of methanol-fueled vessels the carrier has so far ordered to 25. Greek shipowner Danaos Shipping also contracted China’s Jiangsu New Yangzi Shipbuilding last month to build two 8,000-TEU methanol-ready container ships that will be chartered to container line operators upon delivery in the second half of 2026. CMA CGM and HMM have also ordered a total of 21 methanol-powered container ships this year. The orders were placed even though revenues at Evergreen Marine and its two rival Taiwan carriers are continuing to plunge this year due to falling demand and a slump in container freight rates, according to filings the carriers have made to the Taiwan stock exchange. Latest figures show Evergreen’s revenues shrank 61% to $4.3 billion between January and June, compared with $11 billion in the same period last year. Rival carriers Yang Ming Marine Transport and Wan Hai Lines have seen similar levels of falling revenues. Yang Ming reported a 67% drop in revenues, to $2.3 billion, in the first half, according to a regulatory filing Monday. Wan Hai saw H1 revenues slump 68% to $1.6 billion, it reported Monday. Contact Keith Wallis at keithwallis@hotmail.com .

Container Shipping News

Container lines

Evergreen confirms orders for 24 methanol-ready container ships

<div class="phx-topic abstract-wrapper">All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload boxes that departed China and Southeast Asia in recent days, according to market sources in India.</div>

All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload boxes that departed China and Southeast Asia in recent days, according to market sources in India.

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<div class="phx-topic">An estimated 100,000 TEUs of Far East-originated cargo that has become stranded en route to the Middle East is set to land across Indian ports as ocean carriers divert from the war zone, market sources in India say. All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload containers that departed ports in China and Southeast Asia in recent days, according to local industry sources who spoke with the Journal of Commerce. Representatives from Maersk, CMA CGM, Hapag-Lloyd, Ocean Network Express, and Cosco Shipping are already in discussions with authorities at the Indian West Coast ports of Nhava Sheva, Mundra, Pipavav and Kandla to strike yard space deals for the storage of diverted loads, the sources said. With a planned rerouting count of approximately 40,000 TEUs, Maersk is also considering Gangavaram Port on India’s southern East Coast as an additional discharge point, the sources added. Maersk could not be reached for comment. Carriers at Nhava Sheva are primarily engaging with PSA International’s flagship Bharat Mumbai Container Terminals (BMCT), which now has measurable spare cargo-handling space following the 2025 terminal expansions that doubled annual throughput capacity to 4.8 million TEUs. BMCT has already handled a few ships diverted to Nhava Sheva to drop boxes, including Hapag-Lloyd’s 24,000-TEU Damietta Express, while terminal berthing data updated Thursday points to a lineup of nine ad-hoc calls through March 19. The terminal can stack up to 25,000 TEUs on dock, with capacity for 3,000 reefer plug-ins for refrigerated cargo, without causing major operational pressure on the quayside, sources noted. Port and customs authorities in Nhava Sheva are collaborating to identify and allocate dedicated extra yard space off the dock in line with recent government directives to ease Middle East supply chain pain points. Mediterranean Shipping Co. is already a significant regional transshipment player at Mundra and Vizhinjam in the south, riding on its strategic partnerships with Adani Ports, and there are no indications the carrier will stop using those ports to handle stranded cargo. <h3>India–Middle East rates jump </h3>Evacuating diverted containers is complicated in the current scenario, carrier sources agree, but they are betting on alternative shuttle connections to Sohar in Oman and Khor Fakkan and Fujairah in the United Arab Emirates to keep clearing boxes out in parallel, with final transit legs <a href="https://www.joc.com/article/as-war-rages-multimodal-demand-surges-on-asia-europe-landbridge-6185162">handled by road wherever feasible</a>. While space is not guaranteed, forwarder sources have reported wild swings in spot pricing for Nhava Sheva–Middle East bookings: up to $2,500 per TEU and $3,500 per FEU for Sohar and $2,000 per TEU and $3,000 per FEU for Khor Fakkan. That’s from as low as $50 to $75 per FEU for bookings to Jebel Ali last month. “Our strategy is to prioritize refrigerated containers for onward connectivity,” a Nhava Sheva-based operations executive at a European carrier said. “We are working on a combination of regional options to handle affected cargo,” an executive with an Asia-based carrier said. However, no one is certain how efficiently those plans will play out in such a fluid environment. Terminals across major Indian ports are operating at normal speed at the moment, except for slightly longer waiting times reported at Nhava Sheva due to bunching of vessels. But trade experts warn of port congestion risks if a large influx of diverted containers arrives within a few days as they believe there will be a scramble at yards/terminal gates to connect or reconnect boxes on to ships when normal ocean service patterns return. Another regional factor pushing carriers onto the Indian coast is the space crunch at Sri Lanka’s Colombo Port to hold ad-hoc volumes. Local sources speaking with the Journal of Commerce have reported high yard occupancy levels across Colombo terminals due to a steady surge in traditional transshipment volumes. Colombo handled 604,173 TEUs of transshipments in January, up from 589,134 TEUs in December, industry data shows. ”With ongoing schedule disruptions, there has been a bump in container dwells,” said a Colombo terminal executive who didn’t want to be identified. “So, we are turning away Middle East cargo callers at the moment.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

An estimated 100,000 TEUs of Far East-originated cargo that has become stranded en route to the Middle East is set to land across Indian ports as ocean carriers divert from the war zone, market sources in India say. All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload containers that departed ports in China and Southeast Asia in recent days, according to local industry sources who spoke with the Journal of Commerce. Representatives from Maersk, CMA CGM, Hapag-Lloyd, Ocean Network Express, and Cosco Shipping are already in discussions with authorities at the Indian West Coast ports of Nhava Sheva, Mundra, Pipavav and Kandla to strike yard space deals for the storage of diverted loads, the sources said. With a planned rerouting count of approximately 40,000 TEUs, Maersk is also considering Gangavaram Port on India’s southern East Coast as an additional discharge point, the sources added. Maersk could not be reached for comment. Carriers at Nhava Sheva are primarily engaging with PSA International’s flagship Bharat Mumbai Container Terminals (BMCT), which now has measurable spare cargo-handling space following the 2025 terminal expansions that doubled annual throughput capacity to 4.8 million TEUs. BMCT has already handled a few ships diverted to Nhava Sheva to drop boxes, including Hapag-Lloyd’s 24,000-TEU Damietta Express, while terminal berthing data updated Thursday points to a lineup of nine ad-hoc calls through March 19. The terminal can stack up to 25,000 TEUs on dock, with capacity for 3,000 reefer plug-ins for refrigerated cargo, without causing major operational pressure on the quayside, sources noted. Port and customs authorities in Nhava Sheva are collaborating to identify and allocate dedicated extra yard space off the dock in line with recent government directives to ease Middle East supply chain pain points. Mediterranean Shipping Co. is already a significant regional transshipment player at Mundra and Vizhinjam in the south, riding on its strategic partnerships with Adani Ports, and there are no indications the carrier will stop using those ports to handle stranded cargo. India–Middle East rates jump Evacuating diverted containers is complicated in the current scenario, carrier sources agree, but they are betting on alternative shuttle connections to Sohar in Oman and Khor Fakkan and Fujairah in the United Arab Emirates to keep clearing boxes out in parallel, with final transit legs handled by road wherever feasible . While space is not guaranteed, forwarder sources have reported wild swings in spot pricing for Nhava Sheva–Middle East bookings: up to $2,500 per TEU and $3,500 per FEU for Sohar and $2,000 per TEU and $3,000 per FEU for Khor Fakkan. That’s from as low as $50 to $75 per FEU for bookings to Jebel Ali last month. “Our strategy is to prioritize refrigerated containers for onward connectivity,” a Nhava Sheva-based operations executive at a European carrier said. “We are working on a combination of regional options to handle affected cargo,” an executive with an Asia-based carrier said. However, no one is certain how efficiently those plans will play out in such a fluid environment. Terminals across major Indian ports are operating at normal speed at the moment, except for slightly longer waiting times reported at Nhava Sheva due to bunching of vessels. But trade experts warn of port congestion risks if a large influx of diverted containers arrives within a few days as they believe there will be a scramble at yards/terminal gates to connect or reconnect boxes on to ships when normal ocean service patterns return. Another regional factor pushing carriers onto the Indian coast is the space crunch at Sri Lanka’s Colombo Port to hold ad-hoc volumes. Local sources speaking with the Journal of Commerce have reported high yard occupancy levels across Colombo terminals due to a steady surge in traditional transshipment volumes. Colombo handled 604,173 TEUs of transshipments in January, up from 589,134 TEUs in December, industry data shows. ”With ongoing schedule disruptions, there has been a bump in container dwells,” said a Colombo terminal executive who didn’t want to be identified. “So, we are turning away Middle East cargo callers at the moment.” Contact Bency Mathew at bencyvmathew@gmail.com .

Maritime

Carriers seek to offload stranded Asia-Middle East containers at Indian ports

<div class="phx-topic abstract-wrapper">The new orders from the Taiwan-based carriers came as both reported lower net profit and revenues for 2025 due to softer freight rates. </div>

The new orders from the Taiwan-based carriers came as both reported lower net profit and revenues for 2025 due to softer freight rates.

<div class="phx-topic">Two of Taiwan’s largest container lines, Yang Ming and Wan Hai, are enhancing their fleets after each opted to order six dual-fuel container ships despite both reporting lower net profit and revenues for 2025. Yang Ming, the larger of the two carriers, said Thursday it would order six 13,000-TEU LNG-fueled container ships as part of a wider strategy to replace older ships and vessels coming to the end of existing charters. The carrier said it has a “mid- to long-term goal of a 124-vessel fleet, 1.25 million TEUs in operating capacity, and a 3% to 3.5% share of the global container market by 2032.” Yang Ming said while its directors agreed to the purchase in principle, they will decide details of the order, including the shipyard and delivery schedule, “in accordance with the company’s internal regulations.” “The new generation 13,000-TEU class is highly compatible with the existing 10,000-TEU fleet and is expected to serve as the backbone of Yang Ming’s east-west services,” the carrier said in a statement. “These vessels offer optimal economies of scale and deployment flexibility across key trade lanes, including Asia to/from North America (both East and West coasts), South America, and the Mediterranean.” Separately, intra-Asia focused Wan Hai said it has ordered six dual-fuel container ships from shipyards in China. Four 6,000-TEU LNG-powered vessels have been ordered from CSSC Huangpu Wenchong Shipbuilding in a deal worth up to $328 million, the carrier said in a Taiwan stock exchange filing this week. Wan Hai said each vessel will cost between $75.2 million and $82 million. A second order covering two 9,200-TEU methanol-powered container ships has been awarded to Shanghai Waigaoqiao Shipbuilding. Each ship will cost between $102 million and $112 million, giving a potential order value of up to $224 million, Wan Hai said in separate stock exchange filing. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ef78ab1f-3609-44d0-a713-fb260bc40609"></dynamic-object></div>Wan Hai has an order backlog of 28 ships totaling 345,200 TEUs in capacity, comprising 16 8,700-TEU and 12 10,000-TEU vessels, for delivery between this year and 2030, the carrier said The new orders from Yang Ming and Wan Hai add to an already expanding backlog of container ships which totals more than 1,350 ships with a combined capacity of 11.8 million TEUs, Niels Rasmussen, chief shipping analyst at maritime industry lobby group BIMCO, said in a commentary. According to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global, dual-fuel LNG ships represent just over 6.4 million TEUs of the order book, with methanol-powered vessels comprising almost 1.7 million TEUs. <h3>Lower rates hit 2025 earnings </h3>The new orders from the Taiwanese carriers came as they announced weaker financials for last year. Yang Ming said its 2025 net profit plummeted 73% to $538 million on lower freight rates, while operating revenues fell 26% to $5.2 billion. The carrier said its trans-Pacific services were affected by tariff-related factors that dampened shipment momentum, although European and intra-Asia markets remained relatively stable. “Looking ahead, trade protectionism and geopolitical crises remain persistent,” Yang Ming said. “Escalating conflicts in the Middle East and the Red Sea have had an impact on….the stability of the maritime supply chain. Complex transshipment arrangements have also increased operational challenges, placing additional pressure on port operations and increasing the risk of terminal congestion while pushing up insurance premiums and bunker costs.” Wan Hai, meanwhile, saw net profit drop 28% to $1 billion last year, while operating revenues fell 8% to $4.5 billion. The carrier is expected to provide further details when it officially releases its annual results next month. Evergreen Marine, Taiwan’s biggest container line, will announce profit and revenue figures in a Taiwan stock exchange filing on Friday. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Two of Taiwan’s largest container lines, Yang Ming and Wan Hai, are enhancing their fleets after each opted to order six dual-fuel container ships despite both reporting lower net profit and revenues for 2025. Yang Ming, the larger of the two carriers, said Thursday it would order six 13,000-TEU LNG-fueled container ships as part of a wider strategy to replace older ships and vessels coming to the end of existing charters. The carrier said it has a “mid- to long-term goal of a 124-vessel fleet, 1.25 million TEUs in operating capacity, and a 3% to 3.5% share of the global container market by 2032.” Yang Ming said while its directors agreed to the purchase in principle, they will decide details of the order, including the shipyard and delivery schedule, “in accordance with the company’s internal regulations.” “The new generation 13,000-TEU class is highly compatible with the existing 10,000-TEU fleet and is expected to serve as the backbone of Yang Ming’s east-west services,” the carrier said in a statement. “These vessels offer optimal economies of scale and deployment flexibility across key trade lanes, including Asia to/from North America (both East and West coasts), South America, and the Mediterranean.” Separately, intra-Asia focused Wan Hai said it has ordered six dual-fuel container ships from shipyards in China. Four 6,000-TEU LNG-powered vessels have been ordered from CSSC Huangpu Wenchong Shipbuilding in a deal worth up to $328 million, the carrier said in a Taiwan stock exchange filing this week. Wan Hai said each vessel will cost between $75.2 million and $82 million. A second order covering two 9,200-TEU methanol-powered container ships has been awarded to Shanghai Waigaoqiao Shipbuilding. Each ship will cost between $102 million and $112 million, giving a potential order value of up to $224 million, Wan Hai said in separate stock exchange filing. Wan Hai has an order backlog of 28 ships totaling 345,200 TEUs in capacity, comprising 16 8,700-TEU and 12 10,000-TEU vessels, for delivery between this year and 2030, the carrier said The new orders from Yang Ming and Wan Hai add to an already expanding backlog of container ships which totals more than 1,350 ships with a combined capacity of 11.8 million TEUs, Niels Rasmussen, chief shipping analyst at maritime industry lobby group BIMCO, said in a commentary. According to Sea-web, a sister product of the Journal of Commerce within S&P Global, dual-fuel LNG ships represent just over 6.4 million TEUs of the order book, with methanol-powered vessels comprising almost 1.7 million TEUs. Lower rates hit 2025 earnings The new orders from the Taiwanese carriers came as they announced weaker financials for last year. Yang Ming said its 2025 net profit plummeted 73% to $538 million on lower freight rates, while operating revenues fell 26% to $5.2 billion. The carrier said its trans-Pacific services were affected by tariff-related factors that dampened shipment momentum, although European and intra-Asia markets remained relatively stable. “Looking ahead, trade protectionism and geopolitical crises remain persistent,” Yang Ming said. “Escalating conflicts in the Middle East and the Red Sea have had an impact on….the stability of the maritime supply chain. Complex transshipment arrangements have also increased operational challenges, placing additional pressure on port operations and increasing the risk of terminal congestion while pushing up insurance premiums and bunker costs.” Wan Hai, meanwhile, saw net profit drop 28% to $1 billion last year, while operating revenues fell 8% to $4.5 billion. The carrier is expected to provide further details when it officially releases its annual results next month. Evergreen Marine, Taiwan’s biggest container line, will announce profit and revenue figures in a Taiwan stock exchange filing on Friday. Contact Keith Wallis at keithwallis@hotmail.com .

Yang Ming, Wan Hai boost combined order book with 12 new ships

<div class="phx-topic abstract-wrapper">Truck-air solutions are also taking off with rising interest from shippers as the Middle East war removes the popular sea-air services via Jebel Ali in the UAE as a viable option. </div>

Truck-air solutions are also taking off with rising interest from shippers as the Middle East war removes the popular sea-air services via Jebel Ali in the UAE as a viable option.

<div class="phx-topic">Major ocean carriers are offering land-based solutions for cargo going to and from the war-hit Persian Gulf, with the only ocean entry point via the Strait of Hormuz effectively closed to shipping. Maersk is delivering Gulf-bound cargo to ports in the region for onward transport by another mode. “We are using Salalah (Oman) and Khor Fakkan (UAE) for cargo that comes from the east and are securing trucking capacity to take it into the Gulf,” said Maersk CCO Karsten Kildahl. “For cargo that comes from Europe, we focus mainly on Jeddah (on the Red Sea) and are deploying trucks to take the cargo 1,500 km across the Arabian Peninsula through the desert.” Mediterranean Shipping Co. (MSC) is using its Asia-Mediterranean Dragon and Jade services to move cargo inland to the Persian Gulf via King Abdullah and Jeddah ports in Saudi Arabia. Key inland destinations in the Gulf include Damman, Riyadh, Jubail, Bahrain, Kuwait, Hamad, Jebel Ali and Abu Dhabi. CMA CGM has reopened its export bookings with immediate effect from Iraq, Kuwait, Qatar, Bahrain, Saudi Arabia and the UAE, and is deploying multimodal solutions around feeder ships and trucking. Options include carrier haulage from Iraq, Kuwait, Qatar and Bahrain via bonded landbridge to Sohar in Oman. From the UAE, solutions are CMA CGM land bridge to Sohar and trucks from Iraq, Kuwait, Qatar, Bahrain and Dammam via bonded landbridge across Saudia Arabia to Jeddah. DHL Global Forwarding launched DHL Truckair in January, which involves trucking from Asia to Uzbekistan and an onward flight to Turkey from where the goods are shipped, trucked or flown to Europe. “This isn’t a direct response to recent developments (in the Middle East), but it is an example of Asia-Europe services that utilize road freight,” the DHL spokesperson said. He noted that road freight was being used to move cargo between transport hubs in the Middle East as an alternative to air on some intra-regional routes with the Persian Gulf still largely out of bounds. In general for Asia-Europe needs, DHL Global Forwarding said customer enquiries for both road and rail solutions “have risen notably” as reliability improves and shippers look for alternatives to higher cost air freight. “To address these needs, DHL Global Forwarding is working continuously on more alternative and multimodal transport concepts that further strengthen connectivity between Asia and Europe,” a DHL spokesperson said, declining to provide volume figures. <h3>Rising demand for Asia-Europe land transport </h3>Forwarders are reporting rising demand for road and rail transport from Asia to Europe as transit times and reliability improve and cross-border procedures become more predictable. CEVA Logistics is also seeing truck-air solutions taking off with accelerating interest from shippers, particularly with the Middle East war making popular sea-air services via Jebel Ali in the United Arab Emirates unviable. “We are seeing clear and sustained growth in demand for road and multimodal freight services between Asia and Europe, driven by improving infrastructure, more predictable border procedures and shippers’ need for faster, flexible alternatives to traditional routings,” said Kelvin Tang, vice president of ground and rail for Asia Pacific at CEVA Logistics. ”In the Asia–Europe market overall, combined rail and cross‑border trucking volumes are up around 15% year on year, reflecting this shift in shipper behavior,” Tang told the Journal of Commerce. CEVA did not provide specific volume figures. Transit times for road from China to Europe are between 12 and 19 days, while rail freight transits are 10 to 25 days. Rates from Chinese terminals to European terminals are volatile and vary from week to week, influenced by demand, bottlenecks on the Poland-Belarus border, and disruption in ocean shipping. An automotive shipper based in Europe said trucking solutions out of Asia had matured and currently offered better pricing than in the past. "The main advantage is that 66 pallets can be loaded into a truck, but rail containers can hold a maximum of 44 pallets,” the source told the Journal of Commerce. “The last time I benchmarked pricing in January, the price per pallet by truck to southeast Europe was lower than by train via Russia. For central Europe the cost per pallet would probably be very similar.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Major ocean carriers are offering land-based solutions for cargo going to and from the war-hit Persian Gulf, with the only ocean entry point via the Strait of Hormuz effectively closed to shipping. Maersk is delivering Gulf-bound cargo to ports in the region for onward transport by another mode. “We are using Salalah (Oman) and Khor Fakkan (UAE) for cargo that comes from the east and are securing trucking capacity to take it into the Gulf,” said Maersk CCO Karsten Kildahl. “For cargo that comes from Europe, we focus mainly on Jeddah (on the Red Sea) and are deploying trucks to take the cargo 1,500 km across the Arabian Peninsula through the desert.” Mediterranean Shipping Co. (MSC) is using its Asia-Mediterranean Dragon and Jade services to move cargo inland to the Persian Gulf via King Abdullah and Jeddah ports in Saudi Arabia. Key inland destinations in the Gulf include Damman, Riyadh, Jubail, Bahrain, Kuwait, Hamad, Jebel Ali and Abu Dhabi. CMA CGM has reopened its export bookings with immediate effect from Iraq, Kuwait, Qatar, Bahrain, Saudi Arabia and the UAE, and is deploying multimodal solutions around feeder ships and trucking. Options include carrier haulage from Iraq, Kuwait, Qatar and Bahrain via bonded landbridge to Sohar in Oman. From the UAE, solutions are CMA CGM land bridge to Sohar and trucks from Iraq, Kuwait, Qatar, Bahrain and Dammam via bonded landbridge across Saudia Arabia to Jeddah. DHL Global Forwarding launched DHL Truckair in January, which involves trucking from Asia to Uzbekistan and an onward flight to Turkey from where the goods are shipped, trucked or flown to Europe. “This isn’t a direct response to recent developments (in the Middle East), but it is an example of Asia-Europe services that utilize road freight,” the DHL spokesperson said. He noted that road freight was being used to move cargo between transport hubs in the Middle East as an alternative to air on some intra-regional routes with the Persian Gulf still largely out of bounds. In general for Asia-Europe needs, DHL Global Forwarding said customer enquiries for both road and rail solutions “have risen notably” as reliability improves and shippers look for alternatives to higher cost air freight. “To address these needs, DHL Global Forwarding is working continuously on more alternative and multimodal transport concepts that further strengthen connectivity between Asia and Europe,” a DHL spokesperson said, declining to provide volume figures. Rising demand for Asia-Europe land transport Forwarders are reporting rising demand for road and rail transport from Asia to Europe as transit times and reliability improve and cross-border procedures become more predictable. CEVA Logistics is also seeing truck-air solutions taking off with accelerating interest from shippers, particularly with the Middle East war making popular sea-air services via Jebel Ali in the United Arab Emirates unviable. “We are seeing clear and sustained growth in demand for road and multimodal freight services between Asia and Europe, driven by improving infrastructure, more predictable border procedures and shippers’ need for faster, flexible alternatives to traditional routings,” said Kelvin Tang, vice president of ground and rail for Asia Pacific at CEVA Logistics. ”In the Asia–Europe market overall, combined rail and cross‑border trucking volumes are up around 15% year on year, reflecting this shift in shipper behavior,” Tang told the Journal of Commerce. CEVA did not provide specific volume figures. Transit times for road from China to Europe are between 12 and 19 days, while rail freight transits are 10 to 25 days. Rates from Chinese terminals to European terminals are volatile and vary from week to week, influenced by demand, bottlenecks on the Poland-Belarus border, and disruption in ocean shipping. An automotive shipper based in Europe said trucking solutions out of Asia had matured and currently offered better pricing than in the past. "The main advantage is that 66 pallets can be loaded into a truck, but rail containers can hold a maximum of 44 pallets,” the source told the Journal of Commerce. “The last time I benchmarked pricing in January, the price per pallet by truck to southeast Europe was lower than by train via Russia. For central Europe the cost per pallet would probably be very similar.” Contact Greg Knowler at greg.knowler@spglobal.com .

Surface

Air Cargo

Asia-Europe

Truckload

International rail

As war rages, multimodal demand surges on Asia-Europe landbridge

<div class="phx-topic abstract-wrapper">The agency in charge of enforcing US shipping law reminded the market that any change in ocean tariffs must come with a 30-day notice period prior to implementation so it can be reviewed.</div>

The agency in charge of enforcing US shipping law reminded the market that any change in ocean tariffs must come with a 30-day notice period prior to implementation so it can be reviewed.

<div class="phx-topic">The US Federal Maritime Commission (FMC) on Wednesday told shippers to check their ocean freight bills for any surcharges related to the war in the Middle East that have not been formally reviewed by the agency, as carriers look to recoup additional costs from rising bunker fuel prices and disrupted networks. In a statement Wednesday, the agency said it is “closely monitoring the impact the current conflict in the Middle East is having on shipping conditions through the Strait of Hormuz” and any rate adjustments ocean carriers are making in response. The FMC reminded shippers that any change in the ocean tariff must come with a 30-day notice period prior to implementation so it can be reviewed by the agency. The only exception is a “special permission” request, which can have a shorter notice period. “Shippers are encouraged to access and review their common carrier’s tariff,” the FMC said. “Ocean common carriers are responsible for ensuring that service contracts and their amendments are filed in a timely and accurate manner.” Ocean carriers began assessing war-related surcharges for any shipments to and from the Persian Gulf states on March 2, the Iran declared that any commercial ship passing through the Strait of Hormuz would be subject to attack. Within a day of that announcement, five commercial ships were attacked. While those surcharges were effective immediately for non-US trades, ocean carriers did say US trades to the Middle East would be subject to a 30-day notice period. By Monday, ocean carriers began telling customers of emergency fuel surcharges on all global trades. The closure of the Strait of Hormuz has throttled shipments of one-fifth of global oil supply and <a href="https://www.joc.com/article/maersk-forced-to-ship-fuel-from-us-europe-as-asia-bunkers-start-to-run-dry-6184651">resulted in fuel shortages</a> in an important bunkering region for the shipping industry. <h3>AgTC watching </h3>Speaking at the Journal of Commerce’s TPM26 event in Long Beach last week, Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said the 30-day review period was necessary for the FMC to assess whether the surcharges are justified. When similar surcharges were issued in early 2024 due to the Houthi attacks against ships transiting the Red Sea, Friedmann said the FMC waived a notice period for a surcharge from one ocean carrier. However, a subsequent economic analysis questioned whether the surcharge was warranted, given the ocean carrier was also saving on Suez Canal tolls by diverting around the Cape of Good Hope. “We were pretty upset that the waiver was granted like that, so we made a stink about it,” Friedmann told the conference. “But the key was if you do the analysis, the carrier is not really losing much money. “I have contacted all the FMC commissioners already that this could be repeated,” he added. “But apparently they learned the lesson.” In August 2021, the FMC <a href="https://www.joc.com/article/fmc-orders-carriers-to-justify-us-port-congestion-surcharges-5249012">ordered eight carriers</a> to show how congestion surcharges and other fees tied to the pandemic-driven supply chain disruption met legal and regulatory requirements. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The US Federal Maritime Commission (FMC) on Wednesday told shippers to check their ocean freight bills for any surcharges related to the war in the Middle East that have not been formally reviewed by the agency, as carriers look to recoup additional costs from rising bunker fuel prices and disrupted networks. In a statement Wednesday, the agency said it is “closely monitoring the impact the current conflict in the Middle East is having on shipping conditions through the Strait of Hormuz” and any rate adjustments ocean carriers are making in response. The FMC reminded shippers that any change in the ocean tariff must come with a 30-day notice period prior to implementation so it can be reviewed by the agency. The only exception is a “special permission” request, which can have a shorter notice period. “Shippers are encouraged to access and review their common carrier’s tariff,” the FMC said. “Ocean common carriers are responsible for ensuring that service contracts and their amendments are filed in a timely and accurate manner.” Ocean carriers began assessing war-related surcharges for any shipments to and from the Persian Gulf states on March 2, the Iran declared that any commercial ship passing through the Strait of Hormuz would be subject to attack. Within a day of that announcement, five commercial ships were attacked. While those surcharges were effective immediately for non-US trades, ocean carriers did say US trades to the Middle East would be subject to a 30-day notice period. By Monday, ocean carriers began telling customers of emergency fuel surcharges on all global trades. The closure of the Strait of Hormuz has throttled shipments of one-fifth of global oil supply and resulted in fuel shortages in an important bunkering region for the shipping industry. AgTC watching Speaking at the Journal of Commerce’s TPM26 event in Long Beach last week, Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said the 30-day review period was necessary for the FMC to assess whether the surcharges are justified. When similar surcharges were issued in early 2024 due to the Houthi attacks against ships transiting the Red Sea, Friedmann said the FMC waived a notice period for a surcharge from one ocean carrier. However, a subsequent economic analysis questioned whether the surcharge was warranted, given the ocean carrier was also saving on Suez Canal tolls by diverting around the Cape of Good Hope. “We were pretty upset that the waiver was granted like that, so we made a stink about it,” Friedmann told the conference. “But the key was if you do the analysis, the carrier is not really losing much money. “I have contacted all the FMC commissioners already that this could be repeated,” he added. “But apparently they learned the lesson.” In August 2021, the FMC ordered eight carriers to show how congestion surcharges and other fees tied to the pandemic-driven supply chain disruption met legal and regulatory requirements. Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

FMC says ‘closely monitoring’ carrier rate moves tied to Middle East war

<div class="phx-topic abstract-wrapper">The average price for a gallon of diesel fuel rose 96 cents for the week ending March 9, according to the Energy Information Administration, the biggest seven-day spike since the agency began releasing the data in 1994. </div>

The average price for a gallon of diesel fuel rose 96 cents for the week ending March 9, according to the Energy Information Administration, the biggest seven-day spike since the agency began releasing the data in 1994.

<div class="phx-topic">The US trucking industry may be showing signs of coming out of a nearly four-year-long freight recession as spot rates have remained elevated, especially along the East Coast and in the Midwest, after the disruption caused by snow and ice storms in January and February. And now lending support to rates is the uncertainty tied to the war in the Middle East and the resulting surge in fuel prices. The average price for a gallon of diesel fuel rose 96 cents for the week ending March 9, according to the US Energy Information Administration. That’s the biggest seven-day spike since the agency began releasing data in 1994, topping the previous record of a 75-cent spike in March 2022 after Russia invaded Ukraine. Diesel now sits at nearly $4.90 per gallon nationally and more than $6/gallon in California. For the shipper, it means the average fuel surcharge has risen between 15 and 20 cents per mile, causing rates on long hauls across the US to rise sharply. Shippers will notice when they receive invoices from brokers and carriers in the coming weeks. Trucking executives believe the bullish fundamentals will push contract rates higher as those deals are renegotiated. Indeed, the process has already begun, according to multiple shippers; sources have told the Journal of Commerce that brokers are refusing to handle loads on contracts signed as recently as Jan. 1 unless rates are renegotiated. “Tender rejections are up 13 to 15%,” said ITS Logistics Chief Commercial Officer Josh Allen. “That’s the first rejection. If shippers have done [requests for proposals], maybe as recently as 90 to 180 days ago, some of those contract rates are already underwater.” According to a Journal of Commerce analysis, shipper-paid spot rates nationally increased between 15% and 20% year over year in February. But rates are surging in pockets, rather than nationally. Rates between November and February jumped 52 cents per mile on loads originating in the Midwest, but only rose 10 cents for originations in the Southwest. <h3>‘Signs of disruption’ </h3>Tightening capacity is the result of both slower economic conditions causing some carriers to go bankrupt, and by the Trump administration’s crackdown on non-domiciled drivers and push for English language proficiency rules. There is also the proposed Dalilah’s law, which would prohibit states from issuing commercial driver’s licenses (CDLs) to undocumented immigrants and retroactively cancel all existing licenses to those individuals. “For the first time in roughly three years, routing guides are showing signs of disruption,” said Nolan Transportation Group President and Chief Operating Officer Drew Herpich. “Many transportation RFPs that went live this year were priced in Q3 and Q4 of last year when market conditions were significantly more stable.” Herpich added that as tender rejection rates increase, more freight is going to the second, third, or fourth contract carriers in the shipper’s routing guide or directly posted on the spot market. He also said that carriers and brokers are “becoming more disciplined” around capacity commitments, and communication with customers is becoming clearer as the weekly volume approaches or exceeds the total outlined in the contract. “Conversations around contract alignment are occurring across the market,” Herpich said. “The most effective approach has been collaborative discussions with customers to address market shifts and ensure sustainable pricing that supports service reliability and execution.” Allen said the so-called “waterfall” is beginning as rates need to be adjusted. “I think it’s happening everywhere,” he said. “A shipper calls and says ‘you are 12th in line from a rating perspective in the routing guide. The 11 before you have declined, would you like these opportunities at these published rates?’” At the Raymond James Investor Conference last week, truckload carrier J.B. Hunt Transport Services said the tightening capacity shows similarities to the last major regulatory crackdown in 2017. “We’ve really not had a supply market shrinkage since probably ’17 or ’18 with ELDs [electronic logging devices],” Nick Hobbs, J.B. Hunt’s president of highway services, said at the conference. “Probably the most talked about is non-domiciled drivers ... We’re also seeing driver schools shut down [CDL mills] and we’re seeing a lot of enforcement around chameleon carriers.” The term CDL mills has been coined to describe low-quality truck driving schools that prioritize high-volume, rapid training over safety, which are increasingly getting shut down by the US government. Chameleon carriers refer to trucking companies who operate with multiple company names and registration numbers, swapping one placard for another on their trucks to evade law enforcement. Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>. </div>

The US trucking industry may be showing signs of coming out of a nearly four-year-long freight recession as spot rates have remained elevated, especially along the East Coast and in the Midwest, after the disruption caused by snow and ice storms in January and February. And now lending support to rates is the uncertainty tied to the war in the Middle East and the resulting surge in fuel prices. The average price for a gallon of diesel fuel rose 96 cents for the week ending March 9, according to the US Energy Information Administration. That’s the biggest seven-day spike since the agency began releasing data in 1994, topping the previous record of a 75-cent spike in March 2022 after Russia invaded Ukraine. Diesel now sits at nearly $4.90 per gallon nationally and more than $6/gallon in California. For the shipper, it means the average fuel surcharge has risen between 15 and 20 cents per mile, causing rates on long hauls across the US to rise sharply. Shippers will notice when they receive invoices from brokers and carriers in the coming weeks. Trucking executives believe the bullish fundamentals will push contract rates higher as those deals are renegotiated. Indeed, the process has already begun, according to multiple shippers; sources have told the Journal of Commerce that brokers are refusing to handle loads on contracts signed as recently as Jan. 1 unless rates are renegotiated. “Tender rejections are up 13 to 15%,” said ITS Logistics Chief Commercial Officer Josh Allen. “That’s the first rejection. If shippers have done [requests for proposals], maybe as recently as 90 to 180 days ago, some of those contract rates are already underwater.” According to a Journal of Commerce analysis, shipper-paid spot rates nationally increased between 15% and 20% year over year in February. But rates are surging in pockets, rather than nationally. Rates between November and February jumped 52 cents per mile on loads originating in the Midwest, but only rose 10 cents for originations in the Southwest. ‘Signs of disruption’ Tightening capacity is the result of both slower economic conditions causing some carriers to go bankrupt, and by the Trump administration’s crackdown on non-domiciled drivers and push for English language proficiency rules. There is also the proposed Dalilah’s law, which would prohibit states from issuing commercial driver’s licenses (CDLs) to undocumented immigrants and retroactively cancel all existing licenses to those individuals. “For the first time in roughly three years, routing guides are showing signs of disruption,” said Nolan Transportation Group President and Chief Operating Officer Drew Herpich. “Many transportation RFPs that went live this year were priced in Q3 and Q4 of last year when market conditions were significantly more stable.” Herpich added that as tender rejection rates increase, more freight is going to the second, third, or fourth contract carriers in the shipper’s routing guide or directly posted on the spot market. He also said that carriers and brokers are “becoming more disciplined” around capacity commitments, and communication with customers is becoming clearer as the weekly volume approaches or exceeds the total outlined in the contract. “Conversations around contract alignment are occurring across the market,” Herpich said. “The most effective approach has been collaborative discussions with customers to address market shifts and ensure sustainable pricing that supports service reliability and execution.” Allen said the so-called “waterfall” is beginning as rates need to be adjusted. “I think it’s happening everywhere,” he said. “A shipper calls and says ‘you are 12th in line from a rating perspective in the routing guide. The 11 before you have declined, would you like these opportunities at these published rates?’” At the Raymond James Investor Conference last week, truckload carrier J.B. Hunt Transport Services said the tightening capacity shows similarities to the last major regulatory crackdown in 2017. “We’ve really not had a supply market shrinkage since probably ’17 or ’18 with ELDs [electronic logging devices],” Nick Hobbs, J.B. Hunt’s president of highway services, said at the conference. “Probably the most talked about is non-domiciled drivers ... We’re also seeing driver schools shut down [CDL mills] and we’re seeing a lot of enforcement around chameleon carriers.” The term CDL mills has been coined to describe low-quality truck driving schools that prioritize high-volume, rapid training over safety, which are increasingly getting shut down by the US government. Chameleon carriers refer to trucking companies who operate with multiple company names and registration numbers, swapping one placard for another on their trucks to evade law enforcement. Contact Dan Ronan at contactdanronan@gmail.com .

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Elevated US trucking rates get new boost from diesel gains amid Middle East war 

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